The contribution of the manufacturing industry to the Tasmanian economy can be assessed in terms of its contribution to Gross State Product (GSP). GSP is the total market value of goods and services produced in Tasmania within a given period after deducting the cost of goods and services used up in the process of production, but before deducting allowances for the consumption of fixed capital.

In 2003-04, the manufacturing sector contributed 13.7% to Tasmania's GSP based on factor incomes (i.e. the sum of compensation of employees, gross operating surplus and gross mixed income).

Compensation of employees includes wages and salaries, employer contributions to pension and superannuation funds, and premiums paid by employers to workers' compensation schemes. In 2003-04, some 13.4% of Tasmania's compensation of employees was in the manufacturing industry.

Gross operating surplus and gross mixed income is defined as gross value added minus compensation of employees, minus taxes on production and imports payable plus subsidies receivable. In 2003-04, some 14.1% of Tasmania's gross operating surplus and gross mixed income was in the manufacturing industry.

MANUFACTURING'S CONTRIBUTION TO GROSS STATE PRODUCT, Tasmania

Compensation of employees

Gross operating surplus and gross mixed income

Gross State Product(a)

Year

$m

% of Tas.
total

$m

% of Tas.
total

$m

% of Tas.
total

1998-99

859

15.7

655

r 14.1

1,514

r 15.0

1999-2000

847

15.5

645

r 13.9

1,492

14.7

2000-01

850

15.1

r 651

r 13.7

r 1,501

r 14.4

2001-02

r 871

r 14.7

r 702

r 13.4

r 1,573

14.1

2002-03

r 905

r 14.3

r 755

r 13.7

r 1,660

r 14.0

2003-04

913

13.4

860

14.1

1,773

13.7

r revised(a) Based on factor incomes (i.e. the sum of compensation of employees, gross operating surplus and gross mixed income).

Source: Australian National Accounts: State Accounts (cat. no. 5220.0).